Budget & Administration Committee Meeting Agenda · receive benefits under the WSIB as if the...

Budget & Administration Committee Meeting AgendaThursday, June 18, 2020

Budget & Administration Committee Meeting

June 18, 2020 at 6:00 P.M.

This meeting will be held in person for Budget and Administration committee members and designated, limited staff only.

Attendance will be in compliance with the Provincial 10-person maximum gathering size restrictions and physical distancing and

hygiene safety measures. The public may access the meeting by teleconference.

To access the meeting, please dial 1-866-219-8638. Please then enter the conference access code: 4987945 and the # key.

1. Chairman’s Remarks – Moccio 2. Declaration of Conflict of Interest 3. Approval of Agenda

4. Delegations

5. Consent Items

5.1. Approval of Budget & Administration Committee Minutes – April 23, 2020 5.2. WSIB Injury Statistics

6. Chairman’s Report on Board of Directors Actions – Moccio

BA 2002 – 2019 Report by the Auditors and 12 Month Audited Financial Statements

7. Business Arising from the Minutes

8. Staff Reports/Memorandums

Reports and Results to be Received: 8.1. 1st Quarter Financial Results – Operating – McDougall 8.2. 1st Quarter Financial Results – Capital & Major Maintenance – McDougall

8.3. 1st Quarter Vendor Report – McDougall 8.4. 2020 Operating Budget Projection – McDougall

9. New Business 10. In-Camera Items for Matters of Law, Personnel and Property

11. Next Meeting – August 20, 2020

12. Adjournment

5.1 Hamilton Conservation Authority

Minutes

Budget & Administration Committee April 23, 2020

Minutes of the Budget & Administration Committee meeting held on Thursday, April 23, 2020 at 6:00 p.m., by teleconference.

Present: Santina Moccio, in the Chair Dan Bowman Jim Cimba Lloyd Ferguson Maria Topalovic

Regrets: None

Staff Present: Lisa Burnside, Gord Costie, Matt Hall, Bruce Harschnitz, Neil McDougall, Scott Peck, Jaime Tellier, and Nancy Watts

Others Present: Melanie Dugard and Kashif Kahn – Grant Thornton

1. Chairman’s Remarks

The Chair called the meeting to order and welcomed everyone present. She thankedstaff for their unwavering efforts to sustain operations and compliance with legislativeregulations and restriction. She also acknowledged the steady hand of the Chair ofthe Board of Directors.

The governance and administrative by-laws we have at HCA were very helpful tohave in place to permit our Board of directors and advisory committees to holdmeetings via electronic participation. When we undertake our annual review inAugust, Conservation Ontario will be providing some additional language to considerincorporating for enhanced consistency in this regard across all 36 CAs.

The Province has extended the Declaration of Emergency for a further 28 days, untilMay 12. As such, our conservation areas and properties will remain closed, untilfurther notice which continues to halt our revenue generation from our conservationareas. HCA will continue to monitor and follow governmental direction and updateson essential services. We expect further information will be forthcoming with the May

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Budget & Administration Committee -2- April 23, 2020

long weekend a few days following May 12. Staff continue dialogue with the City on operating WWW for the season.

2. Declarations of Conflict of Interest

The Chair asked members to declare any conflicts under the HCA Administrative By-law. There were none.

3. Approval of Agenda

The Chair requested any additions or deletions to the agenda. There were none.

BA2001 MOVED BY: Jim Cimba SECONDED BY: Dan Bowman

THAT the agenda be approved.

CARRIED

4. Delegations

There were none.

5. Consent Items

The following consent items were adopted:

5.1. Approval of Budget & Administration Committee Minutes – November 21, 2019

5.2. WSIB Injury Statistics

6. Chairman’s Report on Board of Directors Actions

The Chair reported that the Board of Directors approved the Mileage Rate andHonorariums and Per Diems reports, as recommended, at the December 12, 2019meeting.

7. Business Arising from the Minutes

There was none.

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8. Staff Reports/Memoranda

8.1. 2019 – Report by the Auditors

Melanie Dugard of Grant Thornton presented a summary of the Audit Strategy and Results for the Hamilton Region Conservation Authority and Confederation Beach Park for 2019. Melanie noted it was a clean audit for both HCA and Confederation Beach Park. COVID-19 was given consideration and addressed in a separate note. No adjustments were made as a result. There were no concerns to bring to the attention of the committee.

The members thanked Grant Thornton for their work on the audit and congratulated staff on the results.

8.2. 2019 – 12 Month Financial Results – Audited Financial Statements

Neil McDougall presented a summary of the report and answered the members’ questions. The potential for the City of Hamilton to suggest HCA retain the Confederation Beach Park 2019 surplus to offset its losses associated with COVID-19 related operational changes/closures was discussed.

Neil thanked Grant Thornton for the continuity of service to complete the audit remotely. The Chair also thanked the auditors and staff for their efforts to complete the audit under such challenging circumstances.

BA2002 MOVED BY: Lloyd Ferguson SECONDED BY: Jim Cimba

THAT the Budget & Administration Committee recommends to the Board of Directors:

THAT the Report by the Auditors be approved; and further

THAT the 2019 Twelve-Month Audited Financial Statements for Hamilton Conservation Authority and Confederation Beach Park be approved.

CARRIED

8.3. 2019 – 12 Month Financial Results – Operating

Neil McDougall provided a summary of the memorandum and answered the members’ questions. Neil advised that while COVID-19 was unexpected, HCA started 2020 from a position of strength.

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8.4. 2019 – 12 Month Financial Results – Capital & Major Maintenance

Neil McDougall provided a summary of the memorandum and answered the members’ questions.

8.5. Reserve Funds and Balances

Neil McDougall provided a summary of the memorandum and answered the members’ questions. Available surplus funds to offset losses associated with COVID-19 were discussed. Neil advised that some funds are earmarked for projects, such as capital improvements and East Mountain land acquisition, however that some of the funds could be available to compensate.

The members thanked Neil for the review and providing context for our financial position in light of the closure circumstances.

Retaining full-time staff was identified as a priority. The benefit of having reserves to draw on was discussed. Management of reserve funds for future contingencies was also noted as a consideration.

Lisa Burnside advised she has contacted Member of Parliament Filomina Tassi to understand if HCA is eligible for federal relief funding. HCA is preparing to apply while awaiting a response regarding eligibility.

8.6. 2019 – 12 Month Vendor Report

Neil McDougall provided a summary of the memorandum and answered the members’ questions. The members inquired about vendor expenses that may not occur in 2020 as a result of the COVID closures. Neil affirmed there may be few expenses in some categories due to operational changes.

8.7. Asset Disposition Report

This report was added at the request of the Committee to itemize asset disposals. Neil McDougall reviewed the items on the list and advised the members of staff resourcefulness with regard to reusing and repurposing assets. The members thanked Neil for his exemplary work on the various reports presented, adding that the reports assist the Committee with their responsibility to assist the Board of Directors with financial oversight for the organization.

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8.8. Rental Properties – Revenues and Costs

Neil McDougall provided a summary of the memorandum and answered the members’ questions.

The members inquired about the nature of the costs associated with the properties. Neil advised that the costs are generally maintenance activities. It was also confirmed for the members that HCA is subject to the Residential Tenancy Act and operates as such.

BA2003 MOVED BY: Maria Topalovic SECONDED BY: Dan Bowman

THAT the memoranda entitled: 2019 – 12 Month Financial Results – Operating; 2019 – 12 Month Financial Results – Capital & Major Maintenance; Reserve Funds and Balances; 2019 – 12 Month Vendor Report; Asset Disposition Report; and Rental Properties – Revenues and Costs, be received for information.

CARRIED

9. New Business

There was none.

10. In-Camera Items for Matters of Law, Personnel and Property

There were none.

11. Next Meeting

The next meeting of the Budget and Administration Committee will be held onThursday, May 21, 2020 at 6:00 p.m., location to be determined.

12. Next Meeting Adjournment

On motion, the meeting adjourned.

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5.2

Memorandum TO: Budget & Administration Committee

FROM: Lisa Burnside, Chief Administrative Officer (CAO)

PREPARED BY: Nancy Watts, Director of Human Resources & Wellness

DATE: June 18, 2020

RE: Workplace Safety & Insurance Board (WSIB) Six month review report for 2020

BACKGROUND

Workplace safety and insurance is a no-fault insurance system for work-related injuries and diseases. It is governed by the Workplace Safety and Insurance Act, 1997 (WSIA), and is managed by the WSIB.

STAFF COMMENT

How the WSIB defines “accident” • a chance event caused by a physical or natural incident, i.e., falling off a ladder or

frostbite • a wilful and intentional act, but not an act of the worker, i.e., being assaulted by a co-

worker, and • a disablement, which may be a condition that has emerged gradually over time, and

cannot be attributed to a clearly defined time or place, i.e., carpal tunnel syndrome, • is an “unexpected result” of the worker’s duties, wherein an accident that was

originally believed to be minor resulted in disablement at a later date, i.e., a back injury from bending over to pick up equipment.

How the WSIB defines “occupational disease” • a disease resulting from exposure to a substance that is related to a particular

industrial process, trade or occupation • a disease peculiar to, or characteristic of, a particular industrial process, trade or

occupation,

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• a medical condition that, in the WSIB’s opinion, requires a worker to be removedeither temporarily or permanently from exposure to a substance because thecondition may be a precursor to an occupational disease

• a disease listed in the WSIB applicable to firefighters and fire investigators.

A worker who suffers from, and is impaired by, an occupational disease is entitled to receive benefits under the WSIB as if the disease were a personal injury by accident.

WSIB reportable Injuries – Six month review (January through June 2020) No approved claims reported April through June 2020

Claim type January thru June 2020

January thru June 2019

Comments

Full time staff Full time staff

Medical Aid 0 0

Lost Time 1 1 -February 2020, Worker suffered a back injury and lost 3 days; worker was walking backward dragging deer carcass off trail and fell

Casual Staff Casual Staff

Medical Aid 2 2 -January 2020, Worker got debris in eye from wind and sought medical attention

Lost Time 0 0 -January 2020, Worker trying to pull door open fell back and hurt hand and sought medical attention

Year to date Total 3 3

STRATEGIC PLAN LINKAGE

The initiative refers directly to the HCA Strategic Plan 2019 - 2023: • Strategic Priority Area – Organizational Excellence

o Providing a positive and safe environment for both staff and visitors

AGENCY COMMENTS

Not applicable.

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LEGAL/FINANCIAL IMPLICATIONS

HCA generally has a good safety record with minor reportable incidents. Once an injury has occurred it is important to return the injured worker to work as quickly and safely as possible and HCA has a strong early return to work program administered through human resources.

CONCLUSIONS

It is important that HCA as an employer, maintain a healthy and safe workplace and to prevent workplace injuries and occupational diseases.

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8.1


FROM: Neil McDougall, Secretary-Treasurer

DATE: June 18, 2020

RE: HCA 1st Quarter Financial Results – Operating

Hamilton Region Conservation Authority

3 mos. 3 mos. $ Budget Actual $2020 2019 Variance 2020 2019 Variance

Watershed Planning & Eng. (337)$ (65)$ (273)$ - - -

Conservation Areas (129)$ 423$ (553)$ 468$ 1,555$ (1,087)$

Westfield Heritage Village CA (142)$ (11)$ (131)$ 116$ 271$ (156)$

Corporate Services (677)$ (154)$ (523)$ (199)$ 774$ (973)$

(1,286)$ 194$ (1,479)$ 385$ 2,600$ (2,215)$

Loan principle repayment (44) (44) - (216) (209) (7)

Net surplus (1,330)$ 150$ (1,479)$ 169$ 2,391$ (2,222)$

The first quarter is always the quietest of the four and in 2020 there was a revenue decline dueto the timing of the levy receipt as compared to last year and the impacts of the pandemic on operations.

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Corporate Services


RevenuesLevy -$ 332$ (332)$ 2,530$ 2,650$ (120)$ Equipment 260 314 (54) 1,100 1,048 52 Foundation 26 76 (51) 184 163 21 Management fees 48 48 (0) 426 448 (22) School Fees - - - 83 87 (5) Interest 58 60 (2) 190 255 (65) Other 43 49 (6) 183 266 (83)

Total 435 880 (445) 4,696 4,918 (222)

ExpensesStaff 758 661 97 3,035 2,963 72 Utilities 47 52 (5) 299 307 (8) Equipment 7 115 (108) 248 215 33 Materials & Supplies 14 25 (11) 111 104 7 Other 286 181 105 1,201 554 647

Total 1,112 1,034 79 4,895 4,144 751

Net surplus / (deficit) (677)$ (154)$ (523)$ (199)$ 774$ (973)$

Land, Vehicle & equipment activityDonations & misc. - - - - 8 (8) Transfer from Reserves - - - - 439 (439)

-$ -$ -$ -$ 447$ (447)$

Land - 6 (6) - 434 (434) Vehicles & misc. 9 103 (94) - 189 (189)

9$ 109$ (100)$ -$ 623$ (623)$

RevenuesLevy variance was due to timing of receipt of funds which came later in 2020.Internal equipment revenue was impacted by the activity restriction imposed mid-March.

ExpensesStaffing, as always, represents the largest portion of the Corporate expenses as it is in the 1st quarter but spending level is tracking budget.Other expense was above last year but below budget.

Net surplus / (deficit)Once the levy funding comes in the deficit will decrease but there will be permanent shortfallsfrom interest income which will be more prominent in the coming quarters.Equipment revenue shortfall will be offset on a consolidated basis by lower equipment expense throughout the organization, as was the case here in Corporate Services. 10

Conservation Areas


RevenuesAdmissions 114$ 90$ 23$ 2,239$ 2,475$ (236)$ Marina 392 924 (532) 1,399 1,381 18 Camping 25 41 (16) 1,247 1,207 40 Concessions 5 2 2 251 272 (20) Events 1 1 0 246 249 (3) Other 56 52 5 455 563 (108)

Total 594 1,111 (517) 5,837 6,146 (309)

ExpensesStaff 370 329 41 2,986 2,544 442 Equipment 106 99 7 617 613 4 Utilities 57 42 14 264 228 36 Materials & Supplies 35 43 (7) 253 219 34 Contracts & Consultant 19 11 8 294 293 1 Other 136 163 (28) 955 694 261

Total 723 688 35 5,369 4,591 778

Net surplus / (deficit) (129)$ 423$ (553)$ 468$ 1,555$ (1,087)$

RevenuesWith the temporary closures of the marinas across the province the normal level of seasonal mooring receipts was drastically reduced. Much followed in April but a significant number of boaters were indicating they would remain on land this year as at this point the rules were unknown.The same issues of uncertainty impacted camping reservations.

ExpensesStaffing represented full time staff only as casual staff would normally only be brought on in thesecond quarter and this year that will be delayed until the environment around openings is madeclearer.

Net surplus / (deficit)With operations suspended mid-March the main impact was the chaos around boating. Some revenue normally appearing in March will show in the second quarter but there will be shortfalls.The budget for 2020 reflected a $1 million decline from 2019 but it was not expected that half ofthe decline would be consumed in the first quarter.

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Westfield Heritage Village Conservation Area


RevenuesLevy -$ 73$ (73)$ 602$ 591$ 12$ Events 16 36 (20) 109 91 17 Admissions 5 15 (10) 109 99 10 School Programs 7 15 (8) 72 74 (2) Other 8 17 (9) 105 176 (70) Total 35 156 (120) 997 1,031 (34)

ExpensesStaff 108 91 17 527 481 46 Advertising & Promotion 6 8 (2) 117 31 86 Utilities 19 19 (0) 49 45 4 Materials & Supplies 10 11 (1) 40 43 (3) Equipment 13 15 (2) 57 62 (5) School Programs 7 7 (0) 33 33 - Other 15 15 (0) 60 64 (4) Total 177 166 11 881 760 122

Net surplus / (deficit) (142)$ (11)$ (131)$ 116$ 271$ (156)$

RevenuesLevy variance was due to timing of receipt of funds which came later in 2020.Event, school programs and general admissions were all impacted by the shutdown of the facilities in response to the pandemic. The Maple Syrup program was just starting when this hit, school closures followed and Sunday programming was suspended.

ExpensesStaffing is always the largest expense area and this continues as budgetted.

Net surplus / (deficit)While the levy funding will catch up in the following quarter the other revenues are lost so offsets in the form of cost reductions or other revenue opportunities will be needed.

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Watershed Planning & Engineering


RevenuesLevy 28$ 154$ (140)$ 1,470$ 1,453$ 17$ Transfer from reserves - - - 17 156 (139) Grants 112 26 86 189 321 (132) Conservation Foundatio - - - - 8 (8) Permits, fees & misc. 54 93 (25) 304 289 15

Total 194 273 (80) 1,980 2,227 (937)

ExpensesStaff 355 324 31 1,740 1,534 206 Contracts & Consultant 152 (8) 159 32 304 (272) Materials & Supplies 2 0 2 34 90 (56)

Utilities 7 5 2 25 20 5 Transfer to reserves - - - - 176 (176)

Other 14 16 (2) 149 103 45

Total 531 338 193 1,980 2,227 (247)

Net surplus / (deficit) (337)$ (65)$ (273)$ -$ -$ -$

RevenuesLevy variance was due to timing of receipt of funds which came later in 2020.Grant revenue was received in support of the MOE water quality program and the work on therefurbishment of the Christie Lake dam.Permits and fees are slow at the start of 2020.

ExpensesStaffing, as always, represents the largest portion of the WP & E expenses as it is in the 1st quarter but remained well within budget.Christie Lake dam and Saltfleet design work invoicing arrived in the first quarter, both with grantmonies to follow.

Net deficitDeficit at this point reflects the timing differences from levy and other grant sources meetingup with expenses. All projects are fully funded so the only real variance is with the permittingwhich always has a slow 1st quarter.

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8.2



DATE: June 18, 2020

RE: HCA 1st Quarter Financial Results – Capital & Major Maintenance

CAPITAL WORKS: JANUARY THROUGH MARCH 2020

Valens Lake Conservation Area

Major Maintenance 17.2%Masterplan 12,679$ Trails 391 Forestry 2,183

Project 82.8%Cabins 73,492

88,745$

Christie Lake Conservation Area

Major Maintenance 91.6%Roads 90$ Trails 1,919 UtilitiesForestry 31,838 Gates & fencingBridges & boardwalksOther

Project 8.4%Dundas Peak trail fencing 757 Beach house upgradesTew autogate & gatehouse 2,339

36,943 14

Dundas Valley Conservation Area & Woodend

Major Maintenance 93.4%Masterplan/mgmt plan 641$ Building maintenance 13,983 Roads & trails 17,098 Signage 899 Utilities 10,440 Forestry 922 Bridges & boardwalks 1,095 Other

Project 6.6%Artaban parking improvements 160 Woodend WP&E lab reno 3,015

48,253

Fifty Point Conservation Area

Major Maintenance 100.0%Building maintenance 10,052$ Masterplans 4,693 Roads & trails 417 Utilities - Forestry 47,291 Other 4,844

Project 0.0%67,297

Hamilton Mountain Conservation Area

Major Maintenance 99.6%Roads & trails 903$ Bridges/Boardwalks 182,572 Fencing/Gates 126 Utilities 183 Other 98

Project 0.4%Saltfleet cleanup 688 Karst buffer &restoration 78

184,648

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Westfield Heritage Village Conservation Area

Major Maintenance 1.0%Gates & fencing 370 Roads & trails 136 Forestry 52

Project 99.0%Parking lot building cleanup 437 Water well supply 54,600

55,595

Watershed Planning and Engineering

ProjectFloodplain mapping 20,609 East Mountain wetland design 136,113 Valens dam piezometers 118 Christie dam lead removal 158,668 Surface water studyCLCA dam electrical 30,371 Other 9,462

355,341

Three months capital and major maintenance 836,822$

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8.3



DATE: June 18, 2020

RE: HCA 1st Quarter Vendor Report

Vendor Summary for Payments January - March, 2020

BETON 119,921 Christie dam lead removal OLIVER LUMBER (GOODFELLOW INC.) 79,477 Boardwalk materials HAMILTON, CITY OF 65,435 Veldhuis loan final payment

CRIMSON LEAF LANDSCAPING LTD. 62,742 Eramosa Karst tree planting FREW ENERGY INC 60,403 Gas & diesel BINBROOK PLUMBING & HEATING 39,838 Wild Waterworks materials and repairs

LEGAL SETTLEMENT 35,000 Employee settlement GOWLING WLG (CANADA) LLP 34,222 Legal fees NOLAN, CIARIO LLP 31,103 Employee settlement

CONSERVATION ONTARIO 29,607 First half membership ADAM'S PLUMBING AND PUMPS 28,216 Westfield water system HAMILTON, CITY OF, TAX SECTION 25,895 Property tax installments

LAFARGE CANADA INC 25,050 Aggregate JASEN ENTERPRISES 24,239 Equipment rental NET ACCESS SYSTEMS INC 23,961 Internet systems

CONSERVATION HALTON 20,493 Grant sharing MARCOS ROMERO 20,221 Painting: Fifty Point, Dundas Valley ATTRIDGE TRANSPORTATION INC 19,648 Final Fall shuttle payments

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SUPERIOR PROPANE INC 19,139 Propane INVESTORS GROUP FINANCIAL SERVICES INC. 17,776 Employee settlement BEATTIES BASICS OFFICE PRODUCTS 16,054 Office supplies

RONA INC 15,645 Hardware and supplies PETO MAC CALLUM LTD 14,182 Monitoring and consulting fees ONTARIO INFRASTRUCTURE AND LANDS CORP. 13,928 Property tax costs on leased properties

GUILLEVIN INTERNATIONAL CO. 13,044 Electrical supplies SUTHERLAND-SCHULTZ LTD 12,078 Christie gate repair TOTAL POWER LIMITED 11,461 Woodend generator repairs

SWEERS MASONRY INC 10,961 Governor's Road barn repairs METROLAND WEST MEDIA GROUP 10,921 Advertising CANADIAN TODS LTD. 10,848 Highway directional signs HAMILTON VIDEO & SOUND LTD 10,089 Auditorium projector and screen

921,598 73.9% # of large vendors 31 11.7% ALL OTHER 325,116 26.1% # of other vendors 233 88.3%

1,246,714 264

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8.4



DATE: June 18, 2020

RE: 2020 Projections of Financial Results – Operating

STAFF COMMENT

The first half of the year is nearing completion and what has transpired was beyond the imagination of everyone back in September of 2019 which was when the Budget for 2020 was brought before the Budget & Administration Committee and on to the Board.

At that time the HCA was conservatively projecting that revenues of $13.5 million would be achievable and after paying all operating expenses there would be $385 thousand left to cover the loan payments of $216 thousand and still have $169 thousand to put towards the Saltfleet wetlands creation.

As our cash registers have been all but shut down for three months now it was thought prudent to recast the budget for 2020 and see, given certain assumptions, where we might end up.

BASIC ASSUMPTIONS

At the time of preparation, which was the first week of June, there were actual results available for January through to April and preliminary results for the month of May. The month of June was then projected using May numbers and adjusting for any new information available. This provided the first half of the year.

The second half projection is pure speculation. We are not sure when marina operations will be “normal”; when camping will be allowed and will we have to close every other site to maintain proper distancing; or what other restrictions may be put in place that affect all of our businesses.

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With this uncertainty in mind a July – December estimate was generating under the following assumptions:

1) Conservation areas will be open but with restrictions resulting in a 50% reductionin revenues

2) Expenses to maintain grounds will remain similar to last year as the acresmaintained has not been changed

3) Concession stores to a great extent will be closed as the new rules are expectedto make the majority even more unprofitable; excluding firewood sales at Valensand canoe rentals at Christie and Valens

4) Permit applications and plan review fees issued by Watershed Planning &Engineering will be down by 30%

5) Westfield events and school programming will be severely impacted6) Management fees will be reduced as Wild Waterworks is closed7) Interest income will drop by ¾ as net prime rate goes from 2.0% to 0.5%8) The federal 75% Wage Subsidy will be received for the months of March and

April9) The province will provide the same level of support for Flood Control programs

that it did last year10) Any shortfall will be offset by the seasonal operating reserve established over

the last few years.

NET RESULTS BY DIVISION

Watershed Planning & Engineering

As the majority of funding this division comes from the levy, which for 2020 is still expected to be received leaving the major risk in revenues to be the permit fee work. There will still be construction and reviews will be required so this source won’t be completely eliminated. Most non-levy supported work can be suspended should grant revenues be held up avoiding additional losses. Additional expenses will be curtailed and by making the general reserve maintained in the division to cover new projects available the Watershed Planning & Engineering division will meet its breakeven position at yearend as planned.

Conservation Areas

Should camping and marina operations get hit to the 50% degree assumed we could see a negative swing of $790 thousand at Valens and $780 thousand at Fifty Point. With events and day admissions being curtailed due to number limitations there could be losses to plan of $390 thousand at Christie Lake and $315 thousand at Westfield. Dundas Valley and Hamilton Mountain areas budgets are very much less reliant on

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revenues and as a cost center the impact isn’t as material. The total deficit would be $1,590,000 which would be a shortfall to Plan of $2.3 million.

Corporate Services

Similar to Watershed Planning & Engineering, the majority of revenue comes from City levy which is presumed to be as budgeted. The major impact to Corporate services on the negative side is the loss of the Wild Waterworks management fee which will be in the neighbourhood of $300 thousand. Another loss of revenue is from the decline in interest rates which could amount to a shortfall of $110 thousand if rates remain at their current level for the balance of the year.

Offsetting these declines will be the federal 75% wage subsidy program. For the two months of March and April we qualify by having the perquisite loss of revenue, being a registered charity and keeping our staff on the payroll over this period. There has been discussion around whether we qualify or not but one of our neighbouring Conservation Authorities was told by a Canadian Emergency Wage Subsidy (CEWS) agent that Authorities would, subject to the previously noted conditions and also noted that Conservation Authorities were not listed in their program eligibility details as a public body. The final decision ultimately rests with the Canada Revenue Agency. To date we have received $580 thousand which is sufficient to offset the losses mentioned in the previous paragraph and the other minor revenue losses from education and miscellaneous revenues are backed up by Foundation grants. Consequently, the Corporate Service division should be at a small surplus level of $200 thousand.

Consolidated

Bringing this all together we have a real deficit of $1,390,000.

At the last Budget & Administration Committee meeting a table of reserves was presented which itemized what is called a “Seasonal operating shortfall protection reserve”. The balance in that reserve at the beginning of 2020 is $3,008,000, more than twice what the conservative projection above requires to cover the deficit.

Summary

What this means is the HCA will not need to go back to any funders to manage through 2020 and this also gives us time to understand what the new normal will look like and make the necessary adjustments so 2021 will not be a repeat, financially speaking, of what we trust is a one-year abnormality.

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